unfinished auction

yesterday i took just one short on e-mini nasdaq based on orderflow gradation

and because some people asked me about an unfinished auction in trading orderflow - how to recognize it, how to interpret it, how to use it for timing entry or filtering, here is the answer.

here is a screenshot of an unfinished auction where u can see high volume at the highest levels of the fooptprint chart. it means the buyers are interested in buying at the high prices - that is why u can see them there, they are there, they accept this high price as ok for them, they keep buying. thus, there is no need to think about taking short for reversal because buyers simply want to buy for high prices and if buyers want to buy for high prices, the market will (most probably) rise. it is a very simple logic. 

moreover, what you can see here is that high-sellers (the guys who sell the market for the highest price possible) are caught at the high prices. they try to sell, but the price don't fall. what does it mean? someone bigger is buying their sell market orders with buy limit orders, eating and absorbing all the high sellers. 

this is how a fond or a bank opens their positions. a fond/bank needs to allocate a big size and they don't really care about the price. i mean, they care, but not so much because their primary aim is to allocate the big size into market. 

they use both (1) active market orders at the highest prices and (2) passive limit orders for buying from the high-sellers. they generally open their positions at the breakout of new highs, because there is enough predictable liquidity that can be (ab)used.

whenever you see this market auction, do not short it!